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Colgate-palmolive Company (CL)
NYSE:CL
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Colgate-Palmolive
(NYSE:CL)
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Rating:65Neutral
Price Target:
$97.00
▲(2.79% Upside)
The score is driven primarily by durable revenue trends and very strong free cash flow, tempered by an aggressive balance sheet (high debt and minimal equity). Technicals are supportive but overbought, while valuation is demanding at ~32x earnings; earnings-call guidance suggests steady but uncertain near-term growth.
Positive Factors
Global brand portfolio & distribution
A long-established brand portfolio and presence in 200+ countries creates a durable competitive moat. Strong shelf presence, retailer partnerships and multi-channel distribution (retail + e-commerce) support pricing, scale economics and steady recurring demand across cycles.
High margins and profitability
Sustained gross margins near 60% and mid-teens net margins indicate structural pricing power in consumer staples categories. These margins support stable cash generation, reinvestment in innovation and resilience to competitive pressure over the medium term.
Strong free cash flow conversion
High free cash flow conversion and positive FCF growth provide durable financial flexibility to fund dividends, buybacks and strategic investments (e.g., AI, innovation, Hill's), reducing dependence on external financing and enabling long-term capital allocation.
Negative Factors
Elevated leverage
Significant leverage and a low equity ratio constrain financial flexibility, increase interest and refinancing risk, and limit capacity to absorb shocks or fund large strategic initiatives without raising additional debt or cutting distributions.
Subdued organic sales momentum
Low organic growth signals saturation in developed markets and weaker underlying demand. Reliance on emerging markets and product changeouts to drive growth raises execution risk and makes sustainable top-line expansion more challenging over the medium term.
Gross margin and operational pressure
Margin compression from input cost inflation, tariffs, FX volatility and product execution issues is a structural headwind. Without sustained productivity gains, these pressures can erode profitability and constrain reinvestment or shareholder returns over the coming quarters.
Colgate-Palmolive (CL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.07B
Dividend Yield2.67%
Average Volume (3M)6.20M
Price to Earnings (P/E)35.4
Beta (1Y)0.09
Revenue Growth-0.05%
EPS Growth2.49%
CountryUS
Employees34,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.95
Shares Outstanding806,064,940
10 Day Avg. Volume8,050,901
30 Day Avg. Volume6,198,989
Financial Highlights & Ratios
PEG Ratio94.39
Price to Book (P/B)89.54
Price to Sales (P/S)3.81
P/FCF Ratio22.21
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue4.10
Enterprise Value/Gross Profit6.83
Enterprise Value/Ebitda22.17
Forecast
1Y Price Target
$95.93Price Target Upside1.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)3.87
Revenue Forecast (FY)$21.28B
Colgate-Palmolive Business Overview & Revenue Model
Company DescriptionColgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly to a range of traditional and eCommerce retailers, wholesalers, and distributors. It also includes pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic products to manage disease conditions in dogs and cats under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.
How the Company Makes MoneyColgate-Palmolive generates revenue primarily through the sale of its consumer products across various categories, including oral care, personal care, home care, and pet nutrition. The company employs a multi-channel distribution strategy, selling products through supermarkets, drugstores, mass merchandisers, and e-commerce platforms. Key revenue streams include sales from its flagship oral care products, which contribute significantly to overall revenue, along with personal care and home care products. Colgate-Palmolive also benefits from strategic partnerships with retailers and distributors that enhance product availability and visibility. Additionally, the company invests in marketing and advertising to strengthen brand recognition and customer loyalty, further driving sales growth.
Colgate-Palmolive Key Performance Indicators (KPIs)
Any
Oral, Personal, and Home Care Revenue Breakdown
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Data provided by:
The Fly
The FlyColgate-Palmolive Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presented a constructive but cautious outlook: management highlighted clear operational and financial wins (record operating cash flow, stronger Q4 momentum, strong Hill's and emerging market performance, successful M&A integration) and ambitious capability investments (omnichannel, RGM, AI, supply chain). At the same time, the company faces meaningful near-term headwinds — low category growth, U.S. volume weakness, cost inflation, tariff exposure, FX volatility and promotional risk — which temper near-term upside and produced a wide 2026 guidance range. Overall, the tone is optimistic about long-term strategy execution but prudent about short-term uncertainty.Q4-2025 Updates
Positive Updates
Investment in Capabilities and Advertising Efficiency
Company is accelerating investments in omnichannel, RGM, digital, data/AI and supply chain; A&P dollars were up ~5% year-over-year on a dollar basis while A&P as a percent of sales was slightly down, reflecting focus on optimization and efficiency.
Delivered Growth Across Key Financial Metrics in 2025
Company reported growth in organic sales, net sales, gross profit, base-business EPS and free cash flow in 2025 despite headwinds; completed 2025 strategy adding $5.0 billion in sales.
Q4 Momentum — Organic Growth and Sequential Improvement
Exited 2025 with improved momentum: organic sales growth in all four categories in Q4 and sequential improvement versus Q3 in every division except North America; underlying organic sales in Q4 were in excess of 3% when excluding the private-label exit.
Strong Hill's Performance
Hill's delivered strong results: ex-private-label growth cited as in excess of 5%, underlying volume positive (about +2% when adjusting for a ~360 basis-point private-label drag), with prescription diet and therapeutic segments gaining share.
Emerging Markets Strength
Emerging markets grew broadly in the quarter (about +4.5% organic growth), with Latin America notably strong (Mexico and Brazil both high-single-digit organic growth) and solid improvement across Asia and Africa.
Record Operating Cash Flow and Strong Balance Sheet
Delivered record operating cash flow of $4.2 billion in 2025, improved free cash flow and low leverage, providing balance sheet flexibility for reinvestment, dividends, buybacks and disciplined M&A.
Prime 100 Acquisition Performing Ahead of Plan
Prime 100 (fresh pet food acquisition) is performing ahead of expectations and is being integrated while management evaluates broader applicability of learnings.
Negative Updates
Low and Volatile Category Growth
Category growth has stabilized at levels below historical norms (management cited ~1.5%–2.5%), prompting a conservative and wide 2026 organic sales guidance range of 1%–4% due to continued uncertainty.
Cost Pressures — Raw Materials and Tariffs
Higher-than-anticipated raw material inflation and the impact of higher tariffs weighed on margins and operating results in 2025.
North America Underperformance and Category Weakness
North America lagged the company overall (no sequential improvement versus Q3), with significant U.S. category softness: multiple categories showed negative volume (9 categories down in Oct, 10 in Nov, 6 in Dec) and Home Care / fabric softeners experienced mid-single-digit volume declines.
Promotional Pressure and Pantry Destocking
Management highlighted elevated promotional activity, pantry destocking and couponing dynamics that are suppressing volumes and could pressure margins if promotion increases further.
Private-Label Impact and Planned Exit
Private-label business created a meaningful drag on volumes in the period (approx. 360 basis points negative impact) and the company is planning an exit which affected comparables.
Foreign Exchange Volatility Risk
Although FX was modestly favorable in Q4 and management expects a low-single-digit revenue benefit in early 2026, FX has historically been unfavorable (8 of the last 10 years) and remains a volatile risk to results.
Impairment and Market-Driven Adjustments
Management referenced an impairment announced with the release, indicating some assets were written down due to changing market conditions — a sign of portfolio pressures and the need for continued optimization.
Company Guidance
Colgate guided 2026 net and organic sales growth to a wide 1%–4% range (with the company saying worse category growth would land it near the low end, current category rates would put it near the middle, and stronger categories would push it toward the high end), citing stabilized category growth around roughly 1.5%–2.5%; the guidance reflects Q4 momentum (underlying organic sales >3% excluding private label), stronger emerging markets (Q4 organic ~4.5%), and brand strengths such as Hill’s (Hill’s ex‑private label growth in excess of 5% in Q4). They expect foreign exchange to be a low‑single‑digit benefit to revenue in 2026, focused mainly in H1 (FX was slightly favorable in Q4 but has been favorable only 2 of the last 10 years), and said FX should be used flexibly—part reinvested in A&P and capabilities and part contributing to the bottom line—while SGPP, RGM and productivity actions provide additional upside to margins and EPS.Colgate-Palmolive Financial Statement Overview
Summary
Strong and improving cash generation (operating cash flow $4.2B; free cash flow $3.6B) and steady revenue growth support overall quality. This is materially offset by balance-sheet risk: high debt (~$8.0B) with extremely thin equity ($54M) reduces financial flexibility, and net income declined in 2025 vs. 2024.Income Statement
Revenue has grown steadily from $16.5B (2020) to $20.4B (2025), pointing to a resilient top line. Profitability is solid with consistently strong gross profit levels, but earnings momentum is mixed: net income fell to $2.1B in 2025 from $2.9B in 2024, suggesting margin pressure and/or higher costs below the operating line despite stable operating profit.78
Positive
Balance Sheet
Leverage is the clear weak spot. Total debt remains high at ~$8.0B (2025) while equity is extremely thin ($54M in 2025; $212M in 2024), which leaves little balance-sheet cushion and makes the company more exposed to shocks. While assets are stable (~$16B), the capital structure is aggressive and has become more equity-light over time.38
Negative
Cash Flow
Cash generation is a major strength. Operating cash flow is strong and improving ($4.2B in 2025 vs. $4.1B in 2024), and free cash flow is robust at $3.6B in 2025 with positive growth. Free cash flow has generally tracked well versus earnings in the years provided, supporting flexibility for dividends, debt service, and reinvestment even when reported net income fluctuates.85
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.38B | 20.10B | 19.46B | 17.97B | 17.42B |
| Gross Profit | 12.25B | 12.11B | 11.25B | 10.15B | 10.29B |
| EBITDA | 3.96B | 4.85B | 4.25B | 3.37B | 3.76B |
| Net Income | 2.13B | 2.89B | 2.30B | 1.78B | 2.17B |
Balance Sheet | |||||
| Total Assets | 16.33B | 16.05B | 16.39B | 15.73B | 15.04B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.10B | 966.00M | 775.00M | 832.00M |
| Total Debt | 7.99B | 8.51B | 9.06B | 9.27B | 7.83B |
| Total Liabilities | 15.96B | 15.50B | 15.44B | 14.93B | 14.07B |
| Stockholders Equity | 54.00M | 212.00M | 609.00M | 401.00M | 609.00M |
Cash Flow | |||||
| Free Cash Flow | 3.63B | 3.55B | 3.04B | 1.86B | 2.76B |
| Operating Cash Flow | 4.20B | 4.11B | 3.75B | 2.56B | 3.33B |
| Investing Cash Flow | -817.00M | -534.00M | -742.00M | -1.60B | -592.00M |
| Financing Cash Flow | -3.26B | -3.39B | -2.79B | -952.00M | -2.77B |
Colgate-Palmolive Technical Analysis
Positive
94.37
Price Trends
81.10
Positive
79.57
Positive
83.36
Positive
Market Momentum
3.28
Negative
81.84
Negative
93.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Positive. The current price of 94.37 is above the 20-day moving average (MA) of 85.34, above the 50-day MA of 81.10, and above the 200-day MA of 83.36, indicating a bullish trend. The MACD of 3.28 indicates Negative momentum. The RSI at 81.84 is Negative, neither overbought nor oversold. The STOCH value of 93.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CL.
Colgate-Palmolive Risk Analysis
Colgate-Palmolive disclosed 19 risk factors in its most recent earnings report. Colgate-Palmolive reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Colgate-Palmolive Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $364.57B | 23.01 | 31.58% | 2.92% | 1.23% | 17.97% | |
73 Outperform | $24.15B | 32.71 | 17.62% | 1.38% | 1.45% | 42.04% | |
73 Outperform | $154.09B | 25.09 | 28.36% | 3.74% | -0.30% | -14.60% | |
65 Neutral | $76.07B | 35.42 | 1602.26% | 2.67% | -0.05% | 2.49% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $14.24B | 18.79 | ― | 5.05% | -9.35% | 123.06% | |
61 Neutral | $34.25B | 16.61 | 147.22% | 5.03% | -10.04% | -23.41% |
* Consumer Defensive Sector Average
CL
Colgate-Palmolive
94.37
10.75
12.86%
CHD
Church & Dwight
100.59
-3.49
-3.35%
CLX
Clorox
117.77
-24.02
-16.94%
KMB
Kimberly Clark
103.21
-20.42
-16.52%
PG
Procter & Gamble
156.87
-7.50
-4.56%
UL
Unilever
70.79
10.64
17.69%
Colgate-Palmolive Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Colgate-Palmolive Issues €600M Senior Notes
Neutral
Nov 10, 2025
On November 3, 2025, Colgate-Palmolive Company entered into an underwriting agreement with Barclays Bank PLC and Banco Bilbao Vizcaya Argentaria, S.A. for the issuance and sale of €600 million in 3.250% Senior Notes due 2035. The issuance, filed under the company’s automatic shelf registration with the SEC, was completed on November 10, 2025, under an existing indenture agreement with The Bank of New York Mellon as trustee, potentially impacting the company’s financial strategy and market positioning.
The most recent analyst rating on (CL) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.
Business Operations and Strategy
Colgate-Palmolive Launches Strategic Growth Program
Neutral
Oct 31, 2025
On July 31, 2025, Colgate-Palmolive‘s Board of Directors approved a new three-year Strategic Growth and Productivity Program aimed at driving future growth and supporting its 2030 strategy. This initiative is expected to incur cumulative pre-tax charges of $200 to $300 million, with a significant portion allocated to employee-related costs and asset-related expenses. The program will impact various regions, including North America, Latin America, Europe, Asia Pacific, Africa/Eurasia, and Hill’s Pet Nutrition, with the majority of charges anticipated to be cash expenditures by December 31, 2028.
The most recent analyst rating on (CL) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.